Jack Dorsey’s Block, formerly Square, to leave former S.F. HQ in another blow to Mid-Market
Block, the finance and payments-focused tech firm led by Jack Dorsey, will leave its Mid-Market office and former headquarters after a decade, the latest pandemic-era blow to San Francisco. It will retain two smaller San Francisco offices at 760...
All the techies who moved into NEMA paying stupid rent so they can walk across the street to work at Twitter and Uber etc. now have absolutely no reason to live in the hellscape that is Mid-Market. That whole area is going to implode.
Mid-market development has been on the decline for a while now, despite the city and so many companies pumping money into it non-stop. Meanwhile the other end of SoMa (Transbay Terminal, South Beach, Embarcadero) has been thriving for both commercial and residential use.
Mid-market will only "rejuvenate" when the tenderloin problem is fixed.
tl;dr not renewing least that ends in Sep 2023. Has other space in SF.
Here's what matters:
The company formerly known as Square confirmed to The Chronicle that it won’t renew its 470,000-square-foot lease at 1455 Market St., which expires in September 2023. Block eliminated its San Francisco headquarters designation last year and allowed almost all workers to work from home permanently, with the option to come into the office only if they want to.
Block said it remains committed to the Bay Area and San Francisco. It recently acquired its 52,000-square-foot office at the Phelan Building at 760 Market St. as part of its $29 billion purchase of e-commerce firm Afterpay. Its 2101 Mission St. office spans 60,000 square feet. The company is also seeking a new small office in the South Bay, with an opening date target of the second half of 2023.
I'm not too concerned about San Francisco commercial real estate. Commercial rents in SF, like housing rents, were extremely high. There were tons of companies who wanted office space in San Francisco (or wanted more) but couldn't justify the cost. Changing commuting standards will lower demand and thus prices, opening up spaces for more marginal uses.
So the real estate will still be occupied. But of course we're going to see fewer people working in the offices because companies are shifting to having people in only two or three days per week instead of five. Some companies will take advantage of lower real estate prices to pack employees in less densely (e.g. cubicles instead of bullpen style seating).
That segment of Market is actually pretty nice with a few good food spots, will be interesting to see what comes of it. I keep wondering how The Market has been doing since Whole Foods moved in, I haven't been in there except to go to the poke place in months.